About the author

James Pethokoukis is a columnist and blogger at the American Enterprise Institute. Previously, he was the Washington columnist for Reuters Breakingviews, the opinion and commentary wing of Thomson Reuters.

The day Romney left Bain Capital: Here’s what really happened

When did Mitt Romney really leave Bain Capital? Was it in 1999 — or was he the de facto, hands-on boss for years after? The Obama campaign and the Boston Globe would have voters believe Romney continued to run things even as he saved the 2002 Winter Olympics. And if Romney was no longer actively involved after 1999, then he misled Bain investors as to his minimal and passive role — a possibly felony, Team Obama and the Globe loosely suggest.

Then there is this fascinating account in the book The Real Romney — written by two Boston Globe reporters — of what happened in 1999 when Romney told his colleagues at Bain he was leaving the firm:

His departure from Bain Capital, though, was not so neat. The partners squabbled over how the firm would operate without him. A power struggle ensued. Several partners made plans to leave. Suddenly a company that relied on loyalty, long-term relationships, and Romney’s personal courtship of investors seemed to be at risk. …

Romney grew worried that the company he had worked so hard to build would be destroyed. The anxiety escalated until finally, one Sunday afternoon, Romney and one of his fellow Mormons at Bain, Bob Gay, knelt on the floor together and prayed for its survival. “We were facing a crucial event that threatened the very existence of our partnership,” Gay said later. In the end, the crisis abated. Romney left the firm, retaining a financial interest in it, and Bain Capital continued to thrive.

That sure sounds like the folks at Bain saw Romney’s exit as being clean break.

Discussion: (50 comments)

To even spend the time and energy defending this specious and ridiculous charge shows how the Romney Campaign brain trust is brain dead.

They, (and this must include Mitt), are a bunch of (with homage to John Lennon): uptight, short-sighted, narrow-minded, neurotic, psychotic, pig-headed politicians. In addition to this, they are also: short-haired, yellow-bellied, mother hubbard soft soaping shmucks with just a pocketful of hope. And more than that, they are also: tight-lipped, condescending, mama’s little chauvinists, with definite indications of being schizophrenic, ego-centric, paranoiac, prima-donnas.

In other words, they are timid, play-it-safe, cowardly idiots, who are in love with losing, and are throwing away a great chance of winning against the worst US President in American history. I say to these morons: “grow a pair!!”. Attack the socialist, spread the wealth destroyer, who is ruining the country. Get busy.

Problem is the MSM doesn’t WANT to report the truth. I watched MSNBC as an experiment for a WEEK. I’ve never seen as much RACE BAITING, GAY BAITING, PREJUDICE individuals in my LIFE! They don’t CARE if what they say’s NOT the truth. They’re going to CONTINUE repeating that mantra until the COWS come home. UNTIL Romney starts fighting back, they’ll CONTINUE to turn him into “Adolf Hitler”. The NAACP has CNN and BSNBC, wrapped around their little finger. It was NAUSEATING in all actuality. It just amazes me that if Mitt Romney has overseas accounts it’s a “MORTAL SIN”… but the DEMS can do the SAME thing as he did and they make it a RELIGIOUS ceremony!

The chief enforcement officer of the federal government (Obama) has just accused you of a possible federal crime. Romney is absolutely right to say put up or STFU. We are not talking about some Daily Kos rumor mill. The thuggery of the Obama Chicago machine knows zero bounds. What these two bit bully hoodlums do not understand is that Americans have caught on. This is not some backwater state senate race, or some unsealed divorce records, or signature invalidation gambit. They are orchestrating a direct assault on the American people, and the American will fight back in 2012 as they did in 2010.

There still remains the rather significant question of why he was listed as the CEO for three full years of SEC filings following his supposed departure. If he did leave, which i’m willing to believe, then whats the story there? His campaigns claim that “it was complicated during the transition” might have explained one year but three? Sorry thats hard to swallow and a more thorough explanation is needed.

1) The MSM is dedicated to the proposition that Barack Hussein Obama SHALL be re-elected to a 2nd term. They are dedicated to doing their part to help the cause. The fact that he is demonstrably unqualified for the job is not important. 2) Their job was much easier 4 years ago, but 4 years ago they could blame George W. Bush for everything. The usual statute of limitations on blaming the previous administration for your troubles is one year, but in this case it was extended another year to 2 years because they didn’t want to be called racists. 3) What to do? Side issues – This Bain nonsense – trumpet the charges, and when they are proven to be b.s. – that goes on page 18.

The problem with this whole strategy is that we – the gum-chewing public – are not as dumb – read gullible – as we were 4 years ago.

BTW – The latest Rasmussen Poll on Obamacare has just been released. So far it’s 100 (out of 100) polls that favor the repeal of Obamacare. The margin favoring the repeal has been in double figures for the last 36 polls.

It is completely a ridiculous charge that Romney was somehow in charge of Bain at the same time he was rescuing the 2002 Olympics that were in such deep deep financial trouble… If he were capable of doing both at the same time then he is even more brilliant and amazing than advertised. I am not sure how this could possibly help Obama’s campaign? LOL

Retaining an investment in a company after leaving is not at all uncommon, it is actually more common than not. If this is the best the Obama campaign can manufacture to smear Romney they are in deep doodoo.

It merely points out that Romney not only started and built a very successful investment company that was really good at turning around failing companies but he also volunteered to leave his own company and save the Olympics in Utah. He was also successful at saving the 2002 Olympics from financial ruin. I just don’t see how bringing these facts up (especially in light of the knowledge that many voters are unaware of Romney successes) can benefit Obama. What is the Obama team smoking?

Wow, accusing the most clean candidate in history of a felony? I mean the man doesn’t drink, smoke, cheat or fail to give generously of both his time and finances to others. And not just to his church. He has also given to neighbors in need and fellow coworkers. Remember the incident of the missing daughter of a coworker? He shut his company down and flew employees along with himself to New York. They spent days handing out flyers and walking neighborhoods until the girl was found. Romney is a very generous man. Unlike our current CiC who has relatives illegally in this country who are on the dole… And relatives in Kenya who barely subsist for a year on less than Obama pays for a haircut…

In every way, Obama doesn’t match up to Romney’s character or life story. I just don’t see the benefit to Obama to constantly attack via Romney’s strengths.

In the words of Forrest Gump “STUPID IS AS STUPID DOES” Meaning that all the stupid people and there millions of dangerously stupid peopls will believe anything that traitor obama or any of his criminal minions say and herein lies the major problem

TexasMom I have been following alot about this election but I had not heard about Mitt closing his co and flying coworkers to NY to help find a missing co-workers child. please expand as to the when and where because all moms and dads will relate to a major act of concern and committment to helping others. thus really needs to get out . it needs to be sent to media[ fox will air]. Thanks.

The Romney campaign doesn’t tout it. Not sure why, but I read an AP quote from the girl’s mother indicating why her family at least prefers not to bring it up any more: “That was a long time ago and she’s gotten on with her life,” [1] Which is the position I suppose I’d take if it was my daughter and 16 years had past. Let her move on.

See news links to the right of the politifact page [2] on the story for contemporary accounts.

I had forgotten about the Bain reaction to the cmissing vdaughter. Romney is so clearly a candidate with high character that “THE CHICAGO THGUGS” who dug up dirt on almost every candidate running against cObama considered a serious challenger COULD FIND NOTHIING TO DEMONIZE HIM. Therefore they have to “LIE” about when he left Bain Capital decisionmaking so as to use “OUTSOURCING” as a demonizing charge. The “most clean candidate” as you call him must nontheless defeat this “CHICAGO THUG” and his liberal, progressive cronies who have a biased media repeating their talkiing points as a “propaganda machine” To do so he must speak out and constantly force the media to accnowledge Obama’s “LIES” and insist on their reporting truthfully as journalists not propagandists.

You have set up a straw man: Romney’s exact words were, . . . “in February of 1999 I became the full-time chief executive officer of the Salt Lake Olympic Organizing Committee and I had after that time no work whatsoever with Bain Capital people. No responsibility or activity with the management of Bain Capital.” No longer being the ‘de facto, hands-on boss’ is much weaker than his claim that he had, “No responsibility or activity with the management of Bain Capital.”

Is Romney conceding that Bain did something wrong after he left? Obama is criticizing capitalism and international trade here, and Romney isn’t fighting back. What’s going on? By quibbling about when he actually left Bain, Romney is abdicating his defense of capitalism and wealth creation. He should be saying, “I left Bain in 1999 but my colleagues at Bain continued to create wealth for millions of Americans who have pension plans, attend universities, and enjoy the work of foundations that were Bain clients.”

Let’s hear more attacks: name all the taxes that have been initiated or increased under the current Regime: new Obamacare tax when you sell your house, tax if you do not have a comprehensive health insurance plan that fits their requirements, taxes on investments which will devastate retirement income and retirement accounts for all, etc, etc, etc. Every one of these should be a nail driven into the tailfeathers of their campaign.

What ever happened to “You will not see your taxes go up one thin dime”? No, it wasn’t a dime, it was millions of dollars that will effect my grandchildren, and probably even my greatgrandchildren. There are so many hidden taxes in Obamacare that it will take years to find out about all of them. And what about the 800 Billion taken from Medicare to fund this travisty? No Senior should even think about voting for ANY democrat that voted for Obamacare.

There’s more here than meets the eye. I have read elsewhere that a company Bain was involved with shortly after Romney left was involved in medical waste removel. Some of the material disposed as waste included aborted fetus. I think they are working at being able to tie him to this company but can’t until they can change the timeline of his departure from Bain.

That’s what John King said on CNN about the medical waste company so the Obama campaign wants to stretch the time-line and drop this bomb in the fall.

Too bad even the Bain partner, who ran for the Senate as a DEM and all the Bain partners, who are DEM bundlers reject the notion that Romney had any management involvement after he left for the Olympics in 1999.

Someone posted a copy of the Bain website from 2000 and it doesn’t show Romney on the management team:

“Mitt Romney Was Not Listed On The Bain Capital Website As An Executive In 2000

Mitt Romney responded in a series of five interviews with the major networks Friday to allegations he stayed at Bain Capital passed the February 1999 date he said he ended there. According to the Bain Capital website in December 2000 accessed online via the Web Archive, Romney was not listed as a member of the Bain Capital “management team.”

Why do we have to hear about THIS? What is THAT going to do for my country? Obama can’t run on his record because it’s DISMAL, so he wants to throw POWDER in the air to create a DISTRACTION from same. He doesn’t WANT to discuss Obamacare, because it’s UNPOPULAR, he can’t discuss rising Taxes, because HE raised them! He can’t tout his unemployment figures because the TRUE Unemployment rate is almost 16% so he’s FAILED there as well. He can’t talk about his 3 “stimuli” because he QUADRUPLED the Debt with NO visible increases of the Economy. He can’t talk about his “Green Energy” programs. 9 of those who got MULTI-BILLIONS of Tax $$$, filed for Bankruptcy. He can’t talk about the Bush Tax Cuts anymore because this’ll be the 3rd time HE has EXTENDED them. I just don’t see HOW Americans think this guy’s done ANYTHING other than sending the US FURTHER down the road toward European-ism!

You have to refute these charges, even though they are false as the general public only sees what’s in the main stream media which the rarely if ever correct even when they find it’s false. Of course they may know it’s false to begin with and do not want to bother correcting.

OTOH time spend explaining false accusations is time spent away from the main issues which is what the Progressives/socialists want.

When a political candidate has only a record of failure to run a reelection campaign on, he/she must resort to deflection, smoke & mirrors. This is clearly the Obama strategy. Mitt Romney needs to stay on target, that being the eeconomy and jobs and leave the propaganda to Obama. Romney does need to come out with a more direct, specific and simple to understand plan of exactly what he will do to jump start the economy. Voters do not want to hear the usual broad brush political ramblings that are used by most politicans. Bottom line Mitt is “Show us the specifics.”

Its like the pot call the kettle black. Obama should shut his mouth. He doesn’t even have a prior job only walking the streets in a neighberhood & that pays nothing. He is jealous of Mitt & his money. Let’s see Obama dig up some true facts on himself before talking about Romney.

I am just waiting for the day Obama throws his wife and mother in law under the bus. I am sure he can blame them for something that has gone wrong with his term. What a mess he has made of this country. I wonder if Michelle is still so very proud to be an American after seeing the mess her husband has made of things. Obama has to be a one term President. Please Americans everywhere unite and get rid of this guy.

I do not think the present administration should demand anything until they themselves release Obamas information. It’s do as I say not as I do for them. The simple fact is who is hideing the most and I think we all know the answer to that.

He’s not hiding anything. The question is, what is Obumski trying to hide, and has been doing so for over 4 years now. He won’t release any personal records, where Ronmey has. We actually know a whole lot more about Mitt Romneys life than we know about Obumski’s, and by now we should know his whole story yet he has spent a lot of money hiding his past. What is he afraid of?

Romney represents everything that obama and thugs hate with insane jealously…………..success, and independent of government success, along with real wealth (the kind you EARN and don’t steal!). That is what really bugs this crowd. It is like a chigger bite that just will NOT go away!

Romney needs to turn defense into offense. Accuse Obambi of giving tax dollars to GM and Chrysler (Auto workers union) and these companies take the $$ to open plants in China and Mexico? What about Frisker? What about all the “Solyndras?” What about Tony Reszko? If Romney continues to allow Obambi and his minions in the state run media define who he is, he is finished! STOP campaigning with the wife. Let her do her own campaigning – in another area of the country. Romney needs to dump all the McCain advisers that work on his campaign. When Obambi and his people “Demand” you release more tax and financial records – fire back and “Demand” that when Obambi releases his School records, explains the questionable draft and Social Security cards, passport inconsistencies, explain why his “Book” on his life is a fraud, etc, THEN, and ONLY then, should Romney release any more of his records. Romney has released what is called for by law. Romney should demand that Pelosi, Debbie (I flunked my Wasserman test) Schultz, Durbin, Schumer, etc., fully explain their overseas investments, etc. Romney must start hitting back at the mediapimps in the state run media. Stop being “Mr. Nice Guy” to them. Realize that they hate your guts. Romney needs a HUGE injection of vitamin Sununu!

It’s the economy stupid!…..oh and taxes for all….. including 20 some in Obamacare alone!!!!!

How about the back door dealings with the UN that Obama is doing……Gun Control July 27th vote….Cap and Trade……cutting nuclear arsenal possibly to 400….giving UN control of the seas….giving UN control of the internet!!!!! Let’s forget about all this petty stuff and get down to the issues….. President Obama has a lot of questions about his past….does he really want to go there???

Don’t talk about the economy, our party brought us here… Accept it. At the end of George Bush tenure OUR economy was in the toilet. We are now trying to get out. Do not blame someone that is trying to get us out.

Jeff: are you bloody kidding me??!!?? Get us OUT of the “mess” by racking up 4+ trillion $$$ in debt in three years? By outsourcing jobs by the thousands…ie: our space shuttle program was shut down and outsourced to Russia; thousands of NASA employees laid off have not been able to find jobs; Jeff Immelt of GE shuts down his US radiology division and ships them over seas instead; even the Olympic uniforms are outsourced to China when we have manufacturers right here in the US who are more than capable to make them; GM shuts down different plant operations that make certain auto parts…and outsources to China and Mexico; billions of OUR $$ given to the “green energy” companies run by obama supporters/donors only to have thousands get laid off due to the businesses going bankrupt and closing? Now, tell me again how obama is “trying to get us out of this mess”. Please, I wait with great eagerness. An answer??? NOPE, not coming. Facts are a very inconvenient truth aren’t they?

Uhhh, and who would that be Jeff? One of the main reasons for the housing bubble bursting was the Dodd/Frank act. Barny Frank said that Fannie Mae, and Freddie Mac were completely sound and there was nothing to worry about. He and Chris Dodd were the ones that told the Real Estate, and Banking businesses to give loans to people who the industries knew could never pay them off, and these two idiots put in rules that made it mandatory for the businesses to comply or pay a penalty. Don’t go telling me that it was George W. Bush that caused the problem when he had a Demoncrat House and Senate that were out to ruin the country.

It should also be noted that Bain was a large contributor to both the Democratic party and Obama. They are a venture capital company that buys up companies and tries to turn them around. It’s to their advantage to do so as that makes the company worth far more than when it fails. At that point they have to call it quits and sell off what’s left.

I understand he tried to save a company that made photo albums. Truth is almost nobody uses them now that everything is digital not many people print out photos. So it is no surprise he could not save them.

On Friday the 13th (7/13/2012) the very illusive Mitt Romney gave very defensive interviews to all FIVE networks on a single day at once!! Just a few days ago Mitt Romney said to FOX News that explaining means that you are WEAK. So his five interviews “explaining” his time at Bain were signs of his weakness!!

Presidential Candidate Mr. Mitt Romney maybe feeling the heat on his role in BAIN Capital, his business experience which was supposed to be his sole criteria for creating jobs and his greatest qualification for running for the American Presidency in the current economy in 2012!

However SEC documents show Mitt Romney as sole owner of all shares of Bain Capital. Romney is shown as CEO, President and Chairman of Board of Bain Capital in 2001 and 2002 then LEGALLY speaking Mitt Romney has been responsible to all that goes on under the banner of Bain Capital.

Mitt Romney can not just share the good like job creation from 1999 to 2002 and leave the ugly like Bankruptcies and layoffs behind as if he had nothing to do about them from 1999 to 2002.

If he really wanted to disassociate himself from Bain Capital he could have resigned and sold all his shares in Bain Capital in February 1999 then it would have been a different matter but to share in the glory of Bain’s job creation accept a salary of $100,000 or MORE (where are the Tax Returns?) for three years and only to refuse to take the responsibility of Bankruptcies and layoffs on his WATCH (1999-2002) is trying to have it both ways and then complaining of playing politics having been caught with his hand in the proverbial Cookie Jar that is the very essence of an ACTIVE LEGAL ROLE in Bain Capital till 2002!! Was Romney getting $100,000.00 or more to do NOTHING for BAIN Capital???

Mitt Romney will have to face the consequences of this leaving Bain “lie” that Mitt Romney has brought on upon himself. If we keep reminding the Romney campaign of the Bain exit lie and Romney’s ill effects on workers robbing them of their hard earned salaries and life long benefits all the way to November then 7/13/2012 (FRIDAY the 13th) will go down as the turning point of the 2012 Presidential election!

No body who has been drawing at LEAST $100,000.00 per year from 1999 to 2002 from Bain Capital “retroactively” retires from Bain Capital AFTER the 2002!!! Then why draw the salary of at LEAST $100,000.00 per year from 1999 to 2002 from Bain Capital if Romney retired from Bain “retroactively” !!!

” … Gillespie continued, “He took a leave of absence and, in fact, Candy, he ended up not going back at all and retired retroactively to February of 1999 as a result.” … ”

However SEC documents show Mitt Romney as sole owner of all shares of Bain Capital. Romney is also shown as CEO, President and Chairman of Board of Bain Capital in 2001 and 2002 then LEGALLY speaking Mitt Romney has been responsible to all that goes on under the banner of Bain Capital. Then to run for Governor of MA Romney sought residency of MA by lieu of his Bain positions. Now either Romney was at the Olympics OR he was at BAIN.

Only one can be true not BOTH at the same time simultaneously!!! Will the true Willard Mitt Romney stand up and accept ONE thing? Does Romney want to accept untrue SEC filings and be called a Felon or agree that he represented Bain from 1999 to 2002?

Republicans betrayed their own conscience when they went against established Republican principles like the MANDATE over healthcare which was a Heritage foundation issue popularized by Gingrich.

Obama did more than his share to UNITE but the Republicans were out to oppose for opposing sake and not following any policy or principles. In the famous words of Minority Senate Leader Mitch McConnell the Republicans were out to defeat the Obama agenda even if it went against established Republican policies set by past precedent.

Mitch McConnell was out to make sure that President Obama remains a one term President and see where it has brought the Congress and its public esteem.

Gingrich out of his own admission was out to defeat Obama from the day he was sworn in as President.

You can not justify the Republicans as the “loyal” opposition as is the case in most mature democracies. They have been out to get President Obama by hook or by crook. A leader can meet the opposition half way but can not fold completely to their whims and fantasies like that of the current Tea Party affiliates.

Republicans will loose in 2012 just like they did in 2008 but with a smaller margin because of the dark money of Billionaires due to Citizens United verdict of the right wing Supreme Court.

So many mistakes and phony distortions in this post. Heritage in 1989 proposed the idea of an individual mandate…which they later abandoned and rejected. The mandate would have had everyone enrolled in insurance plans, BUT those plans were to be run by PRIVATE enterprise, not the government. When “Hillarycare” came along four years later, Republicans (and Heritage does speak for conservative principles, but is not “Republican”) wanted no part of the Democrats’ plan, and the Democrats did not rely on Republicans, NOR doctors, NOR patients, for input. I refer you to the WSJ page where they asked if anyone had heard of these 500 people Hillary was using as her panel. The MANDATE was not a Republican principle, and is even falsely applied by you to this debate. Republicans did not go against their principles (Tea Partiers and others would argue that Democrats don’t even have principles). Please note that the recent bill, Obamacare/Abysmalcare, was passed without one single vote in House and Senate. Further, the drafting of the bill was done with no Republican input of substance. (Who can forget Obama’s nasty swipe at McCain, at Obama’s photo-op performance to “discuss” the ACA. Obama did absolutely nothing to unite Republicans, nor o gain their support. (“The campaign’s over, John,” as he rudely and unprofessionally interrupted John McCain as he tried to speak in that performance. Gingrich was out to defeat Obama. What he wants to defeat are Obama’s ideas which seem to run counter to American principles. And, my oh my, do you see Obama out there trying to support Romney??? Or to defeat him? Enough for this post.